Accelerate Diagnostics(US:AXDX)2023-03-30 02:22Financial Data and Key Metrics Changes - Net sales for Q4 2022 were $3 million, down 9% from $3.3 million in Q4 2021, while year-to-date sales increased by 8% to $12.8 million compared to $11.8 million in the previous year [4][5] - Gross margins were 28% for Q4 and 26% year-to-date, compared to previous year figures impacted by a one-time inventory write-down [5][6] - Net operating loss for Q4 was $14 million, resulting in a net loss of $0.15 per share, while the year-to-date loss was $62.8 million, or $0.76 per share [7][8] Business Line Data and Key Metrics Changes - Recurring revenues continued to grow sequentially quarter-over-quarter and year-over-year [5] - The installed base of Pheno instruments reached 325, with a backlog of 69 instruments pending implementation [9] Market Data and Key Metrics Changes - The partnership with Becton Dickinson (BD) is expected to significantly improve commercial reach and effectiveness in both the U.S. and EMEA markets [11][12] - A 400% increase in new opportunities was noted in Q1 2023 compared to Q4 2022, indicating strong early sales activity [14] Company Strategy and Development Direction - The company is focused on three strategic priorities: building financial strength, growing market share through the BD partnership, and delivering innovation with the Wave platform [3][10] - The BD partnership aims to enhance the commercial reach and effectiveness of sales processes, with a focus on rapid susceptibility testing for bloodstream infections [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by debt obligations and is actively working on a resolution with debt holders, with a forbearance extension until April 5, 2023 [10][30] - The company is optimistic about the potential for market growth and new placements in the second half of 2023, particularly with the BD partnership [25][49] Other Important Information - The company is advancing its next-generation platform, Wave, with preclinical data expected by the end of the year and clinical trials anticipated shortly thereafter [19][50] - The transition to a new CFO, David Patience, was highlighted, with confidence expressed in his ability to lead the company forward [8][48] Q&A Session Summary Question: How should the success of the BD partnership be tracked? - Management indicated that while the partnership is progressing well, it will take time to see significant deal closures, with more actionable guidance expected later in the year [22][24] Question: What is the status of the debt situation? - The company confirmed an extension of the forbearance agreement to April 5, 2023, and is in active dialogue with debt holders to reach a resolution [30][31] Question: What are current access levels for sales? - Management reported improved access levels for sales calls, both in-person and virtual, compared to the previous year, aided by the BD partnership [32][34] Question: How is the BD partnership impacting hospital CapEx? - The partnership is expected to enhance access to capital for larger deals, although hospital spending remains finite [37] Question: How does the product fit with the existing BD Phoenix system? - The Pheno system complements the BD Phoenix platform, providing rapid susceptibility testing for positive blood cultures, while Wave is expected to compete with Phoenix in the future [40][41][43]